The name is derived from the Iroquois word Ahwaga, meaning where the valley widens.

In 1813, Tioga and Owego switched names, putting the village in the same-named town.

On September 27, 1849, a large conflagration now known as "The Great Fire of Owego" began in the Temperance Hall of the Ely building.

[3] The Evergreen Cemetery, St. Paul's Church, Owego Central Historic District, Tioga County Courthouse, and United States Post Office are listed on the National Register of Historic Places.

A bridge connects the village to the Southern Tier Expressway (New York State Route 17), which is on the south side of the river.

[8] Owego was named by Budget Travel magazine's readers as The Coolest Small Town in the United States in a poll.

Results were announced on The Early Show, April 15, 2009, with Budget Travel's editor in chief, Nina Willdorf with Harry Smith.

The Village of Owego is home to a popular annual strawberry festival which has occurred every year in June since 1980 (excepting 2020 and 2021).

The festival regularly draws 20,000 visitors and includes a parade, community 5k run, live music and vendors of fresh produce and prepared strawberry based dishes.